Investment, trade and industry minister Tengku Zafrul Aziz said the government is approaching the negotiations from “a position of strength” as the economy grew 5.1% last year and remains stable.
“We don’t just want to reduce tariffs – we want them to be 0%,” he told reporters after a special Dewan Rakyat sitting on the tariffs today.
The US has announced a 24% “reciprocal tariff” on most Malaysian goods as well as a range of tariffs on about 60 countries. The tariffs have been paused for 90 days to allow for trade negotiations.
However, a 10% blanket duty on almost all imports to the US remains in place.
The investment, trade and industry ministry’s deputy secretary-general (trade), Mastura Ahmad Mustafa, will lead the talks for Putrajaya, while Washington has named an assistant US trade representative as its chief negotiator.
“I want to make an announcement here. We have signed the NDA (non-disclosure agreement) so that Puan Mastura, as our team leader and our deputy secretary-general (trade), will start negotiations tomorrow morning with the assistant US trade representative,” Tengku Zafrul said.
He said while negotiators are bound by the NDA, they will endeavour to brief parliamentary select committees or caucuses on the ongoing tariff talks.
He also said any trade compromises will not affect Bumiputera-related policies and other local interests.
Tengku Zafrul, who was in the US from April 23 to 27 to lead a delegation to discuss the tariffs, said Washington has expressed concern over a US$25 billion trade deficit and non-tariff barriers.
He said he told American bureaucrats that Malaysian GLCs had invested nearly US$45 billion in US equity and bond markets.
He said the US was also concerned about slow halal certification in Malaysia and the risk that technology-related items in Malaysia could be shipped out to certain countries.
“This has been widely mentioned by the (Donald) Trump administration … the importance of US technology not being used by parties which they don’t approve of.
“That’s why they have this export restriction on chips, for example. So whatever chips that come to Malaysia, Indonesia or Singapore … they want to make sure these countries do not allow those chips to be re-exported to other nations,” he said.
Tengku Zafrul also said he told Washington that Malaysia will maintain an open and neutral trade policy while maintaining good ties with partners such as China, the European Union, and Gulf Cooperation Council countries.
“We did not choose the easy path or bow to pressure, but negotiated based on (free trade) principles and strategy,” he said.